Real Estate Innovation Supporting California's Housing Market Recovery in 2020
REDWOOD CITY, Calif., Aug. 6, 2020 /PRNewswire/ -- REX, the real estate technology company connecting residential real estate buyers and sellers and the lowest transaction costs in the industry, has announced national sales figures in July were the highest in the company's history. Nationwide REX experienced a 123 percent increase in homes going into escrow from April to July - despite the impacts of the novel coronavirus.
Public data compiled and analyzed by REX's data team, led by Chief Data Scientist Andy Terrel, shows California's housing market experienced significant impacts in the spring and summer months of 2020, but continues to rebound thanks to innovation and high consumer interest in buying and selling real estate.
"In the early months of 2020, California saw immediate setbacks on several fronts including homeownership and real estate-related employment," said Terrel. "According to public data, average housing values in California remained stable, but the nationwide total loss in economic activity could exceed $72 billion in total real estate transaction volume and $3.2 billion in attendant services and construction. With the nation's largest housing market, much of that pain will be felt in the Golden State."
Prior to the COVID-19 crisis, California homeownership in 2019 sat at 55 percent and had not fully recovered from the 2006 Great Recession high of 60 percent. Statewide single family home (SFH) sales in May 2020 showed a year over year (YOY) drop by 41 percent - the largest such slowdown since November 2007. Local markets were also impacted by the crisis. In May 2020, Sacramento County SFH sales were down 44 percent YOY with Bay Area SFH sales posting a 51 percent drop and Los Angeles experiencing a 46 percent reduction.
California's housing volume was also impacted with May 2020 active listings falling from 65,000 to 49,000 YOY. The volume of active listings fell in every price category except the luxury market, where active listings were actually up 2 percent for homes selling in the $2-3M range, and up 19 percent for homes selling the $3M+ range.
Housing values in May 2020 remained relatively stable with the median sales price for single family homes in May 2020 registering at $590,000, down just 3 percent from April and 4 percent from May 2019.
REX currently operates in seventeen markets across the United States including Southern California, the Bay Area, and Sacramento. California-specific data at REX shows why the state remains the largest market in the company's portfolio and provides some insights into the role technology innovation is playing in helping the state's real estate market recover from the coronavirus pandemic.
-- Californians are increasingly contacting REX about selling their home in
2020. Statewide seller leads at REX are up 297 percent as of July 31
compared to April 1. Over the same period of time, leads were up by 410
percent in Sacramento, 125 percent in the Bay Area, 307 percent in Los
Angeles, and 441 percent in Riverside.
-- Requests for showings of REX listings are also on the rise - thanks to
new features that automate and dramatically improve virtual showings
during shelter in place orders due to the coronavirus pandemic. As of
July, requests to tour one of the company's California listings has
increased 120 percent in comparison to figures from April. Over the same
period of time, requests were up by 410 percent in Sacramento, 125
percent in the Bay Area, 307 percent in Los Angeles, and 6 percent in
Riverside.
-- REX is also experiencing record high escrow figures across California,
with a 70 percent statewide increase in July compared to April. Escrows
at REX in large and small metro markets across California were also up
in July compared to April: 300 percent in Sacramento, 400 percent in
the Bay Area, and 50 percent in Los Angeles.
"This is just another proof point for our consumer-driven business model. Our company was founded in California, the global hub for innovation and one of world's best real estate markets, and we are pleased to be part of the solution for housing affordability and safety as we all work together to recover from COVID-19," said Jack Ryan, REX's Co-founder & CEO. "Together we can regain the losses from early 2020, building on high consumer demand and a strong appetite for technology innovation, convenience and savings. At REX, we will continue to bet on the consumer and focus on meeting their needs."
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ABOUT REX (rexhomes.com)
REX was made for this moment. REX, a real estate technology company founded in Los Angeles and operating in Southern California, the Bay Area, and Sacramento metro area, is connecting buyers and sellers online. REX now services homes across Arizona, California, Colorado, Florida, Georgia, Illinois, Maryland, Massachusetts, Nevada, New York, New Jersey, North Carolina, Oregon, Pennsylvania, Texas, Virginia and Washington DC.
Why? REX is at the convergence of real estate and technology. REX is the only real estate company using AI and dedicated online tools to make purchasing a home straightforward and cost-effective during a global pandemic.
-- Despite the coronavirus, online real estate transactions and virtual
home tours are on the rise across California.
-- Positive growth and consumer-driven innovation represents a real
opportunity for California's housing affordability issues and presents a
healthy future for the state's real estate market.
How? REX delivers a full-service online platform for residential real estate buyers and sellers while offering the lowest transaction costs in the industry.
-- For sellers, REX charges a total fee as low as 2 percent, instead of the
5-6 percent traditional fee.
-- For buyers, the REX advantage is simple. When buyers purchase a home
from REX, they never pay a commission. If buyers purchase an MLS home
through REX, they receive back 50 percent of the MLS-required fee. This
translates to tens of thousands of dollars saved for clients on both
sides of the real estate transaction.
-- Early in 2020, REX began development of a new virtual showings tool -
the first of its kind in the real estate industry. The feature is
available on the REX platform and mobile app, allowing potential buyers
an opportunity to immediately tour a home, connect with an agent, and
schedule one-on-one tours all from the comfort of their home while
sheltering in place due to COVID-19 related health and safety
guidelines.
-- REX has built a full-service online platform that offers greater
convenience to consumers looking to buy and sell real estate. This
includes virtual tours, listing your home, title, escrow, mortgage,
insurance, relocation and moving, landscaping, marketing, and
photography.
REX is a partner in the global fight against housing insecurity, and was built on the foundation of creating opportunities for others and giving back. For every 50 homes sold at REX, the company builds a home for a family that would otherwise be unable to realize the dream of homeownership.
Media Contact: Colin Maynard, cmaynard@rexhomes.com, (916) 834-4274
Download REX Analysis - COVID-19 Impacts On The California Housing Market, July 2020
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SOURCE REX
